Ethanol metabolism and RXR/PPAR functions are tightly interconnected in the liver. Several ethanol metabolizing enzymes are potently regulated by RXR and PPARα after alcohol consumption. The increased ethanol metabolism, in turn, lead to alteration of the redox balance of the cell and impairment of RXR/PPAR functions by direct and indirect effects of acetaldehyde, resulting in deranged lipid metabolism, oxidative stress, and release of pro-inflammatory cytokines. In this paper we summarized the reciprocal interaction between ethanol metabolism and RXR/PPAR functions.